For starters, maybe it is time for the government to step in to protect those of the lower income group.

Based on one’s NRIC number, set limits of personal credit lines and hire purchase based on say, 4 times, of monthly salary.

For car loans, for those earning less than $2,000 per month, a guarantor is needed.

This may deter these people from over-stretching themselves financially and stem a growing social problem.

Words of financial wisdom from my grandpa: “If you don’t have enough cash in the bank to pay for one-third of the item you want to buy, you will still not be able to afford it even if you take a long term loan.”